United Arab Emirates (UAE) Industrial Gases Market Overview, 2029

United Arab Emirates (UAE) Industrial Gases Market Overview, 2029

The industrial gases market in the United Arab Emirates (UAE) is a crucial component of the nation’s industrial and economic framework, playing a significant role in supporting sectors such as oil and gas, petrochemicals, manufacturing, and healthcare. As one of the leading oil producers globally, the UAE’s industrial gases market is deeply integrated with its energy sector. Gases like nitrogen and carbon dioxide are essential in enhanced oil recovery (EOR) processes, which are vital for maximizing oil extraction from mature fields. The petrochemical industry, a cornerstone of the UAE's industrial landscape, relies heavily on gases such as hydrogen for refining and chemical synthesis, crucial for producing plastics, fertilizers, and other chemicals. The UAE’s manufacturing sector, particularly in metals and construction, uses significant quantities of industrial gases. For instance, oxygen and acetylene are widely used in metal fabrication, welding, and cutting processes, supporting the country’s robust infrastructure development and industrial diversification efforts. The UAE's strategic focus on expanding its industrial base beyond oil and gas drives continuous demand for these gases. In the healthcare sector, the UAE has seen a growing demand for medical gases, including oxygen and nitrous oxide, used extensively in hospitals and clinics for patient care, anesthesia, and respiratory therapies. The COVID-19 pandemic amplified the need for a reliable supply of medical oxygen, leading to investments in enhancing medical gas infrastructure and ensuring supply security across the healthcare network. The food and beverage industry in the UAE also utilizes industrial gases, particularly carbon dioxide for carbonation in beverages and nitrogen for food preservation. This is crucial for maintaining the quality and extending the shelf life of food products, aligning with the UAE’s standards for food safety and quality. The UAE’s commitment to sustainability and its Vision 2030 agenda are driving the growth of green technologies and renewable energy sources. Hydrogen, especially green hydrogen produced from renewable sources, is becoming a key focus area as the UAE aims to diversify its energy mix and reduce carbon emissions. The UAE is investing in large-scale hydrogen projects and infrastructure, positioning itself as a leader in the emerging hydrogen economy. Distribution of industrial gases in the UAE is facilitated by a well-developed infrastructure, including extensive pipeline networks, bulk transport systems, and cylinder deliveries, tailored to meet the specific needs of various sectors. Leading companies like Air Products, Gulf Cryo, and Linde have a strong presence in the UAE market, providing advanced gas solutions and technologies. These companies are actively involved in projects that align with the UAE’s focus on innovation, sustainability, and economic diversification.

According to the research report ""UAE Industrial Gases Market Overview, 2029,"" published by Bonafide Research, the UAE Industrial Gases Market is projected to value at more than USD 0.3 Billion from 2024 to 2029. The industrial gases market in the UAE is experiencing robust growth, driven by several key factors integral to the country's economic strategy and industrial activities. The UAE’s substantial oil and gas sector is a primary driver, with industrial gases like nitrogen, oxygen, and carbon dioxide playing critical roles in enhanced oil recovery (EOR), refining, and gas processing. As the UAE continues to maximize its hydrocarbon production and efficiency, the demand for these gases remains high. Additionally, the country’s expanding petrochemical industry, crucial for diversifying the economy, uses significant quantities of hydrogen for refining and chemical synthesis, supporting the production of plastics, fertilizers, and other chemicals. The UAE’s vibrant construction and infrastructure development sector, part of its broader economic diversification efforts, heavily relies on industrial gases. Oxygen and acetylene are widely used in welding and cutting applications essential for building projects and the fabrication of construction materials. The UAE's focus on developing state-of-the-art infrastructure and mega-projects, such as the EXPO 2020 site and numerous high-rise buildings, continues to drive demand for these gases. In the healthcare sector, the UAE’s commitment to expanding and modernizing healthcare services boosts the demand for medical gases like oxygen and nitrous oxide, crucial for patient care, surgeries, and respiratory therapies. The COVID-19 pandemic has further emphasized the importance of a reliable medical gas supply, leading to increased investments in healthcare infrastructure and medical gas distribution systems. 5The UAE's strategic focus on sustainability and its Vision 2030 agenda are propelling the growth of the green hydrogen economy. The UAE aims to become a leader in green hydrogen production, utilizing its abundant renewable energy resources, such as solar power, to produce hydrogen through electrolysis. Significant investments are being made in large-scale green hydrogen projects and the development of supporting infrastructure, aligning with the UAE’s goals to reduce carbon emissions and diversify its energy mix. In terms of newer technologies, the UAE is adopting advanced systems to enhance the efficiency and sustainability of industrial gas production and distribution. Cryogenic air separation units (ASUs) are extensively used for producing high-purity industrial gases, vital for meeting the needs of its diverse industrial sectors. The UAE is also integrating digital technologies, including smart sensors and IoT systems, into gas production and supply chains.

The industrial gases market is segmented in various ways to better understand its diverse applications and economic significance. By type, it includes gases such as oxygen, nitrogen, hydrogen, carbon dioxide, acetylene, and other types including ammonia, methane, butane, and propane. Each of these gases plays a crucial role in different industrial processes; for instance, oxygen is vital for combustion processes, nitrogen is used in food preservation, hydrogen in refining and chemical processes, carbon dioxide in carbonation, acetylene in welding, and other gases in various chemical reactions and energy applications. The market is further categorized by end-user industry, highlighting its extensive utilization across manufacturing, chemical, metal and mining, energy and power, food and beverage, and healthcare industries, among others. Manufacturing industries, for example, represent a significant segment due to their extensive use of gases for welding, cutting, and other processes. The chemical industry heavily relies on gases like hydrogen and nitrogen for producing various chemicals. The energy and power sector uses gases for enhanced oil recovery and power generation, while the food and beverage industry utilizes gases for packaging and carbonation. Healthcare industry applications include medical gases for respiratory therapies and anesthesia. Additionally, the distribution mode of these gases is an important aspect, categorized into on-site pipeline, bulk, and cylinder delivery methods, each tailored to specific industrial requirements and consumption patterns. On-site pipeline distribution is essential for industries with continuous, large-scale gas needs, bulk delivery caters to moderate requirements, and cylinder distribution is suitable for smaller, more flexible applications. The segmentation highlights the global, regional, and country-specific relevance of industrial gases, reflecting the market's dynamic nature and its critical role in supporting various industrial activities worldwide. Understanding these segments helps in comprehending the market trends, identifying growth opportunities, and addressing the specific needs of different industries and regions.

In the UAE, the industrial gases market is regulated primarily by the Emirates Authority for Standardization and Metrology (ESMA), which sets standards and regulations for the production, storage, and handling of industrial gases to ensure safety, quality, and environmental sustainability. ESMA oversees adherence to technical regulations and standards that govern the entire lifecycle of industrial gases, from production facilities to distribution networks. Additionally, the UAE follows international standards such as ISO 9001 for quality management systems and ISO 14001 for environmental management systems, which are essential for companies operating in the industrial gases sector to maintain high standards of operations and compliance. Looking ahead, the prospects for the UAE's industrial gases market are promising, driven by the country's robust industrial and construction sectors, rapid urbanization, and increasing investments in infrastructure and manufacturing. The UAE's strategic geographical location as a hub for trade and logistics further enhances its role in the regional industrial gases market. Future growth is anticipated, particularly in sectors like healthcare, oil and gas, and metal fabrication, where industrial gases such as oxygen, nitrogen, and hydrogen are critical for various applications. Government support is instrumental in fostering this growth, with initiatives like the UAE Vision 2021 and the UAE Energy Strategy 2050 focusing on economic diversification, sustainable development, and the promotion of clean energy technologies including hydrogen. Financial incentives, tax exemptions, and infrastructure investments further bolster the industrial gases sector, encouraging innovation, research, and development in advanced gas technologies. These regulatory frameworks and government initiatives collectively position the UAE's industrial gases market for continued expansion, leveraging its strategic advantages and proactive policies to drive sustainable economic growth and competitiveness in the global market.

The industrial gases market in the UAE faces several distinct challenges that impact its operations and future prospects. One significant challenge is the dependency on imported raw materials and gases due to limited local production capacity. While the UAE has made substantial investments in infrastructure and industrial development, including petrochemicals and manufacturing sectors, it still relies heavily on imports for industrial gases such as oxygen, nitrogen, and hydrogen. This dependency exposes the market to fluctuations in global commodity prices and supply chain disruptions, particularly during periods of geopolitical tensions or global economic uncertainties. Additionally, regulatory compliance in the UAE is stringent, focusing on safety, environmental sustainability, and quality standards. Companies operating in the industrial gases sector must adhere to regulations set by authorities such as the Emirates Authority for Standardization and Metrology (ESMA), which ensures that products meet local and international standards. Compliance with these regulations requires continuous investment in technology, infrastructure, and skilled manpower, which can pose challenges, especially for smaller firms. Moreover, the UAE's geographic location in the Gulf region, while advantageous for trade and logistics, also presents challenges in terms of competition from regional and global players. Large multinational corporations dominate the market with extensive networks and established customer bases, making it challenging for local companies to compete on a global scale without robust differentiation strategies. The transition towards sustainable energy solutions, including hydrogen, presents both opportunities and challenges for the UAE's industrial gases market. While there is growing interest and investment in renewable energy and hydrogen technologies, scaling up production and distribution infrastructure requires significant capital investment and technological advancements. Furthermore, the COVID-19 pandemic highlighted vulnerabilities in global supply chains and logistics, impacting the industrial gases sector's operations and project timelines. Despite these challenges, the UAE government's proactive approach to economic diversification through initiatives like the UAE Vision 2021 and the UAE Energy Strategy 2050 provides opportunities for the industrial gases market to innovate, expand its capabilities, and capitalize on emerging trends in clean energy and technology.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Industrial Gases market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Oxygen
• Nitrogen
• Hydrogen
• Carbon Dioxide
• Acetylene
• Other Types (Ammonia, Methane, Butane, And Propane)

By End user Industry
• Manufacturing Industry
• Chemical Industry
• Metal & Mining Industry
• Energy & Power Industry
• Food & Beverage Industry
• Healthcare Industry
• Others

By Mode of Distribution
• On-Site pipe line
• By Bulk
• By Cylinder

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Industrial Gases industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.